UPDATED: Treasury Admits Tax Plan Won't Pay for Itself
Last edited Mon Dec 11, 2017, 03:12 PM - Edit history (1)
Source: PoliticalWire
December 11, 2017 at 11:53 am EST By Taegan Goddard
The U.S. Treasury Department released a one-page analysis of the GOP’s proposed tax reform plan.
Dan Primack: “The report claims the tax plan would be revenue neutral, acknowledges that the tax plan will not pay for itself via increased economic growth, despite Treasury Secretary Steve Mnuchin having regularly made such a claim… A single page feels pretty skimpy for an analysis that is supposed to help justify the most significant tax code changes since 1986.”
Matthew Yglesias: “The administration’s analysis claims, basically, that the tax cuts would pay for themselves if and only if they are paired with a bunch of other ideas congress already rejected.”
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Read more: https://politicalwire.com/2017/12/11/treasury-admits-tax-plan-wont-pay/
Update:
Tax cuts alone won't cover full cost of GOP plan, Treasury says
By BERNIE BECKER 12/11/2017 11:48 AM EST
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The Treasury Department said Monday that the GOP tax plan currently before Congress would need an assist from other Trump administration priorities to pay for itself.
Tax cuts alone aren't enough, Treasury said in a one-page analysis, citing welfare reform and infrastructure spending as additional boosts to the economy.
The analysis assumes that an economy led by Republicans would boost revenues by $1.8 trillion over a decade — more than enough to pay for the roughly $1.5 trillion in tax cuts envisioned by Republicans.
Treasury Secretary Steven Mnuchin has been saying for months that his department would produce an analysis that proved the tax cuts would be fully paid for, and other top Republicans like Senate Majority Leader Mitch McConnell have insisted they have no doubt that would be the case.
The White House drew some criticism earlier this year for assuming that economic growth would hit close to 3 percent a year under President Donald Trump’s watch, and Democrats quickly lashed out at what Senate Minority Leader Chuck Schumer dubbed “fake math” in the new analysis.
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https://www.politico.com/story/2017/12/11/treasury-tax-cuts-republican-plan-217504
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